05 Feb 2026
398
India’s Union Budget FY 2026–27: Key Highlights, Announcements and Major Takeaways

On February 1, 2026, Finance Minister Nirmala Sitharaman presented the Union Budget for the fiscal year 2026–27, a document widely hailed as the blueprint for India’s transition from a "developing" to a "leading" global economy.

Framed against a volatile global landscape characterized by supply chain decoupling and rapid AI-driven shifts, the Budget reinforces India’s commitment to fiscal discipline while aggressively pursuing industrial scale.

The Finance Minister’s declaration to “transform aspiration into achievement” set the stage for a fiscal strategy that balances multi-trillion-dollar infrastructure ambitions with targeted micro-interventions.

Central to this year’s vision is Yuva Shakti, the drive to convert India's demographic dividend into a high-productivity workforce.

With a projected nominal GDP growth of 10.5% and a real growth estimate hovering around 7%, the Budget aims to solidify India’s position as the world’s fastest-growing major economy.

It moves beyond the corridor-centric logic of the past decade toward a more integrated "City Economic Region" and "Legacy Cluster" approach.

By prioritizing atmanirbharta (self-reliance) in frontier sectors like biopharmaceuticals and semiconductors, the government is not just building capacity—it is insulating the nation from external shocks while deepening its footprint in global value chains.

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